While that agreement will benefit both companies, the deal to acquire Vizio had a clause that included a $100 million buyer-termination fee. With the financial issues that LeEco is having right now, the company hasn’t been able to pay that fee as originally agreed to. In an attempt to settle things out of court, LeEco offered to pay Vizio $40 million up front, then another $10 million after a new deal closed. The remaining $50 million would then be turned into a capital contribution for the joint venture.

Vizio feels that LeEco never intended to pay the entire $100 million and is attempting to get out of it with this new offer. Vizio has filed a lawsuit against LeEco in a California court so they can attempt to collect their original $100 million fee. To make things worse, all of this has happened after Shanghai court froze $180 million in assets which belonged to the LeEco founder and former CEO, his wife and three LeEco affiliates. LeEco has also announced they will be unable to pay their employees in China until August 1oth.